Global Harmonization of Securities Laws: The Achievements of the European Communities

Abstract

The world’s fragmented, sovereign securities markets have been dramatically transcended by the forces of internationalization. Worldwide deregulation has collapsed many of the regulatory barriers to an integrated global marketplace. The most dynamic regulatory evolution has occurred in the European Communities (EC), where, by the year 1992, a single common market is to be achieved. This article provides a comprehensive overview of emergent, supranational corporate and securities regulation in the EC and an analysis of its implications for the continuing globalization of the world’s securities markets. The EC experience indicates that a substantial degree of regulatory harmony can be achieved regionally and globally. However, the author concludes that a European securities regulatory agency may be necessary to promote regulatory harmony through common standards.